- The SOL token price as per the price action is bearish, as it failed to surpass the supply zone.
- The SOL token price is forming a rounding bottom pattern on a daily time frame.
- The pair of SOL/BTC is trading at the price level of 0.001653 with an increase of 2.49% in the past 24 trading hours.
The SOL token price, as per the price action Is bearish as it fails to sustain near the supply, resulting in the fall. The overall cryptocurrency market has been bearish for the past week as a result, the SOL token price was seen facing the heat. At present, the token price is forming lower low and lower high formation on a daily time frame. Before the recent breakdown of the demand zone, the SOL token price was in a strong consolidation. As of now, the SOL token price is trading below the 50 and 100 Moving averages. As the token price fell, it broke the important 100 and 50 MA. Therefore the token price can stay in a bearish trajectory for the upcoming trading days. Moving upwards the token price can be seen facing strong rejection from these MAs. The SOL token price is trading at the lower band of the Bollinger band indicator after facing bearish pressure off the upper band. The range is wide and therefore some consolidation before any further move is bound to happen. The SOL token price has also fallen below the 14 SMA. Volumes have been normal as the token price rests at the demand zone.
The SOL token price is forming a bearish chart pattern on a daily time frame
Relative Strength Index: The RSI curve has dropped below the halfway mark of 50 as the token price fell to the demand zone. The SOL token price as per the price action is bearish and the same as depicted in the RSI curve. The RSI curve is currently translating at 44.78, after rising out of the 25 mark. As of now, the RSI curve has also gone above the 20 EMA, indicating some bullishness signs. If the token price successfully breaks the supply zone, the RSI curve can be seen moving higher supporting the trend.
Moving Average Convergence Divergence: The SOL token price is bearish as it fell below the important breakout zone. Currently, as it rests at the demand zone, the MACD indicator has given a negative crossover. The orange line crossed the blue line on the upside. If the token price fails to sustain above the demand zone, then the fall in the price of the SOL token can result in the MACD line widening supporting the trend.
Average Directional Movement Index: ADX curve has been dipping on a higher time frame as the token continues to fall. In a daily time frame, the ADX curve has dipped out of the 20 mark and has turned upwards. As the token price rests at the short-term demand zone on a 4-hour time frame. It is a positive sign for the token price. Investors should wait for a positive candle formation at the demand zone.
CONCLUSION: The SOL token price is bearish despite forming a bullish chart pattern. As the technical parameters suggest, the token price can be seen breaking the supply zone if bears fail to power it down. It remains to see if the token price will break the demand zone, or bounce off it.
SUPPORT: $28 and $31
RESISTANCE: $47 and $53
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.